Friday, February 28, 2014

Perspective: Land prices during Japan’s lost decade and economics behind it

Source: http://globaleconomicanalysis.blogspot.in/




And the accompanying economics are herewith:


Source: A paper by James Wlicox

Relevance to India:

India is no Japan but there are many similarities in data and trends:


Source: United Nations statistics
  • Population density (people per Sq. km) is comparable: 382 (India) vs 350 (Japan)


  • Population growth rates are declining in India too



  • Slowing GDP growth rate has put pressure on per capita income in the recent past

Source: World Bank Report

  • Bad loans in the banking system are rising and have not found a top yet

Source: Business Line

  
   Conclusion:

    If history is any indicator and the trends continue, land prices would soften in India too.